GE starts production of solar power inverters in Brazil

SAO PAULO, June 9 (Reuters) - General Electric Co has
started producing solar power inverters at its plant in Betim,
Brazil, looking to supply the country's nascent solar power
industry and possibly export the equipment to countries in the
region, a GE executive said on Thursday.

Despite the unfavorable business environment in Brazil,
which is on track for its worst recession ever, GE's marketing
director for the Latin America Power Conversion unit, Sérgio
Zuquim, said the company was positive about prospects for solar
power growth.

"That's inevitable, there is no turning back," Zuquim said
in an interview. "There is political commitment, following
international agreements, for investments on renewables," he
said.

Inverters are a key component on solar power systems. They
convert power generated by photovoltaic plates to alternating
current, or AC, so it can be fed into a commercial power grid.

With the local production, GE consumers would be able to
access more favorable credit lines from Brazil's development
bank, BNDES, which gives better financing terms on deals for
locally produced equipment.

The director said the company had already closed four
contracts with companies awarded operating licenses for new
solar parks in Brazil. The government is promoting solar power
generation in an effort to diversify its energy mix.

Initial investment to add the production line to the plant
in Minas Gerais state was around $20 million, Zuquim said.

The initial steps on solar power development in Brazil have
not been smooth.
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